After – hours trading occurs after the market closes when an investor can buy and sell securities outside of regular trading hours. Trades in the after – hours session are completed through electronic communication networks (ECNs) that match potential buyers and sellers without using a traditional stock exchange.
Regular trading hours for the U.S. stock market, including the New York Stock Exchange (NYSE) and the Nasdaq Stock Market (Nasdaq), are 9:30 a.m. to 4 p.m. Eastern time on weekdays (except stock market holidays).
Market -wide circuit breakers are triggered when the broad-based S&P 500 Index falls by a certain amount within a single trading day, which halts trading across all markets.
A stock market is open 24 hours around the clock, it just isn’t the US stock market. When the US stock market closes the Asian market is already going while the European market hasn’t opened. The European market is in full swing when the US market opens, etc, etc.
It causes rapid and sizable moves in the share price. This volatility also attracts day traders who look to enter and exit trades for a quick profit. Ultimately, stocks move after hours for the same reason they move during the normal session — people are buying and selling.
Stock traders can now buy and sell stocks on the weekends through electronic communications networks, to which traditional and online brokerages have access. For after-hours and weekend orders, the network attempts to match buyer, seller, share amount and price.
|Best Value Stocks|
|Price ($)||Market Cap ($B)|
|NRG Energy Inc. ( NRG)||36.90||9.0|
|Bio-Rad Laboratories Inc. ( BIO)||603.54||18.0|
|Virtu Financial Inc. ( VIRT)||26.97||5.2|
Trading Stocks After Hours: Basics and Platforms During the regular trading day investors can buy or sell stocks on the New York Stock Exchange and other exchanges. They can also trade via digital markets called electronic communication networks or ECNs. After hours and premarket trading takes place only through ECNs.
Often, earnings news, for example, is released before the market opens or after the market closes. In both cases, traders who want to trade a stock will be able to prepare their buy and sell orders before the stock market officially opens.
Circuit breakers halt trading on the nation’s stock markets during dramatic drops and are set at 7%, 13%, and 20% of the closing price for the previous day. The circuit breakers are calculated daily. Trading will halt for 15 minutes if drop occurs before 3:25 p.m.
Level 1: A drop of 7% from the prior day’s closing price of the S&P 500 triggers a 15-minute trading halt. Trading is not halted if the drop occurs at or after 3:25 p.m. ET. Level 2: A drop of 13% triggers a 15-minute halt. Trading is not halted if the drop occurs at or after 3:25 p.m. ET.
There can be a trading halt on that stock while the decision is announced by FDA, no matter if it’s good or bad. In case of approval, the price of the stock will rise high after the halt is over. But, if the drug is rejected, the stock price will go down significantly.
You can still place stock and ETF orders, and invest in cryptocurrency, when the markets are closed.
The U.S. stock market, including Wall Street’s New York Stock Exchange (NYSE) and Nasdaq, the world’s largest and second-largest stock exchanges, respectively, are open from 9:30 a.m. to 4 p.m. ET, Monday through Friday. There are also pre-market and after hours trading sessions known as extended markets.
Trading in foreign exchange and Treasurys takes place 24 – hours a day for the most part of a week. Commodity and stock index futures also can be traded virtually around the clock every trading day. Still, stock trading in the U.S. continues to be concentrated during the regular session.